**Bengaluru Defence Startup NRT Eyes ₹450-Crore Series B Funding**
Bengaluru-based defence startup NewSpace Research and Technologies Pvt. Ltd (NRT) is in discussions to secure a ₹450-crore Series B funding round, led by Cornerstone Ventures, by the end of this year, according to sources familiar with the negotiations. Established in April 2017 by Sameer Joshi and Julius Amrit, NRT is currently in the process of raising a ₹267-crore bridge round, with approximately ₹140 crore already committed by existing investors. Notably, Cornerstone Ventures did not participate in this bridge round but intends to invest in the forthcoming Series B.
To facilitate this fundraising effort, NRT has engaged LGT Wealth India and other advisors, with the transaction currently undergoing due diligence. The company has experienced significant growth over the past year, particularly following Operation Sindoor, which enhanced the demand for its Loitering Munition Systems (LMS) drones. During Operation Sindoor, India’s precision strikes on terror camps in Pakistan utilized loitering munitions systems, with NRT’s swarm drone technology reportedly playing a crucial role.
As India’s drone sector enters a high-growth phase, the potential for drone manufacturing is projected to rise from approximately $4.2 billion by 2025 to $23 billion by 2030, driven by demand in defence, agriculture, logistics, and infrastructure. The FICCI-EY report highlights that defence applications, especially swarm drones and high-altitude, long-endurance platforms, are expected to contribute significantly to this growth as India aims to establish itself as a global drone hub.
For the fiscal year 2023-24, NRT reported operational revenue of ₹96.25 lakh, a sharp decline from ₹103.02 crore the previous year. Total revenue for the year was ₹5.20 crore, down from ₹108.15 crore in the prior fiscal year, resulting in a loss of ₹62.07 crore compared to a profit of ₹1.24 crore the year before, as per company filings. Sources indicate that the successful closure of the bridge round will provide NRT with the necessary funds until larger defence contracts are finalized.
In February 2022, NRT raised $21 million in a Series A funding round led by Pavestone Technology Fund to support its deliveries to the armed forces, followed by a ₹26.6 crore (~$3.21 million) pre-Series B round in December 2022, backed by QRG Investments.
**FAQ**
*What is NewSpace Research and Technologies Pvt. Ltd (NRT) focusing on?*
NRT specializes in developing advanced drone technologies, particularly Loitering Munition Systems, and aims to expand its operations in the growing Indian drone market.
